Controversial new powers will apply to three specific benefits
15:05, 05 May 2026Updated 15:43, 05 May 2026
The DWP has controversial new spy rules.
DWP officials will be able to check details of bank accounts belonging to state pensioners under controversial new rules.
It will relate to low-income households who claim Pension Credit.
New ‘spy’ powers will force banks to share bank account information with the DWP.
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This will happen where there is suspicion of fraud or wrongful payments.
Ministers say it will help to tackle billions wasted in benefit fraud every year.
New powers will be focused on three benefits – Universal Credit, Employment and Support Allowance (ESA) and Pension Credit.
The targeting of Pension Credit comes despite the support being massively underclaimed.
The Government would pay out much more if everyone who is eligible actually claimed it. Close to a million eligible over-65s don’t claim.
Officials will be able to check details such as savings and other forms of income, to see if someone qualifies for benefits they say they do.
DWP also says it will flag up cases where there are errors much sooner.
Concerns have been raised around privacy, with critics claiming it’s a step too far from the Government.
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A DWP spokesperson said: “Our Fraud, Error and Recovery Bill includes an Eligibility Verification Measure which will require banks to share limited data on claimants who may wrongly be receiving benefits – such as those on Universal Credit with savings over £16,000.
“As well as tackling fraud, the new powers will also help us find genuine claim errors sooner, stopping people building up unmanageable debt.
“This measure does not give DWP access to any benefit claimants’ bank accounts.”
Sir Geoffrey Clifton-Brown, chair of the Public Accounts Committee, has warned the DWP around the use of the powers.
He said recently: “Make no mistake, the DWP ’s new powers to reach further into citizens’ lives are significant.
“Our Committee of course firmly supports Government in its responsibility to ensure people are paid the correct benefits.
“But it is essential that these extensive new powers – of compulsion of disclosure over banks and financial institutions, of recovering funds directly from people’s accounts without the aid of the courts – have the risk of overreach mitigated against right from the outset.”